Risk Management Professional Exam Prep

Category - Risk Management

What is a secondary risk?
  1. A risk that is of secondary importance
  2. Residual risk
  3. Force majeure
  4. Risk that is highly unlikely to occur
  5. Risk caused by another risk response strategy
Explanation
Answer: E - Secondary risk is a new risk caused by the response to another risk.

For instance, ejecting your warp core to avoid a breach may leave you immobile and unable to escape attack. Or for a more realistic and less dorky example, shifting employees to cover for sick ones may leave you stretched thin in other divisions.

Key Takeaway: Many firms try to avoid paying for protection against risks by believing they can shift resources in the short term. A thorough analysis of the impact of those actions must be conducted.
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